The Retention Ratio Is Equal To

question 269

Multiple Choice

The retention ratio is equal to:

• A) (net income - dividends paid)/sales.
• B) The change in retained earnings/sales.
• C) 1 - dividend payout ratio.
• D) Net income * (1 + dividend payout ratio).
• E) 1 - plowback ratio.

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Definitions:

Service Charge

A Service Charge is a fee collected for services provided, often seen in the banking, hospitality, and service industries.